SUITABILITY, APPROPRIATENESS AND ADMINISTRATION IN A COMPLEX WORLD A DST White Paper: August 2015
|
|
- Kerrie Robertson
- 5 years ago
- Views:
Transcription
1 SUITABILITY, APPROPRIATENESS AND ADMINISTRATION IN A COMPLEX WORLD A DST White Paper: August
2 Table of Contents Introduction... 3 Current MiFID Model... 4 Complex Becomes Complicated... 5 Model Under MiFID II... 7 A Model for Appropriateness Testing... 8 Closing Thoughts
3 Introduction While the rules for financial services seldom make the world more violent, Schumacher might have observed the recent direction of the European Union (EU) financial regulations and questioned the courage that such developments display. He might also have reflected upon the products that stoked the fire of sub-prime lending and similarly questioned whether their complexity was necessary. Any intelligent fool can make things bigger, more complex and more violent. It takes a touch of genius and a lot of courage to move in the opposite direction. Ernst F. Schumacher Our aspiration for this article is to help readers navigate their own path through the changes to Suitability and Appropriateness rules, without becoming the embodiment of Schumacher s Intelligent Fool. Markets in Financial Instruments Directive (MiFID) introduced the language of complex instruments, and the distinction between Suitability Tests and Appropriateness Tests. All these terms remain relevant under MiFID II, and the fundamental needs of Suitability and Appropriateness are largely unchanged. However, we will see that the new regulation increases the proportion of assets that seem destined to be complex. The Appropriateness Test requires the product provider to consider the knowledge and experience of the investor and establish whether the asset being purchased is appropriate to such an investor. The Firm is able to reuse information already held about the investor, and can request additional information to support the test. While the client might not provide the information requested by the Firm, in such cases the rules permit the Firm to proceed having first informed the client that the Appropriateness Test could not be completed. This differs from Suitability, as a Firm cannot complete business where a Suitability Test initiated has not been completed. 3
4 Current MiFID Model Diagram 1 shows a simplified summary of the current obligations. A Firm is performing MiFID business where it performs a MiFID Activity in respect of a MiFID Asset. Collective Investment Scheme (CIS) Operators and Pension Managers are exempt from MiFID and so are not obliged to perform Appropriateness Tests. The same is true of other firms not performing MiFID business. Firms performing MiFID Advice or Management services must satisfy the Suitability rules instead of Appropriateness. A Firm can potentially avoid performing an Appropriateness Test where it knows some other Firm has performed a Suitability Test though such a position might be difficult to accurately build into administrative processes. There is one further scenario where Appropriateness Tests are not required, which I ll refer to as the Scenario Exemption. This scenario requires three conditions to be satisfied: The Firm is only Executing trades or performing Reception & Transmission of Instructions; The Firm has informed its Client that the Firm bears no responsibility for Suitability; The activity relates to certain types of investment asset considered Non- Complex. CIS Manager / Pension Manager Other Firms Exempt from MiFID Not Performing MiFID Business Suitability Assessed By Another Firm Performing MiFID Business Advice / Managing Execution or 'Reception and Transmission' Other MiFID Business Perform Suitability Test Clearly Inform Client: "No Suitability Test" Listed Shares Bonds / Debt UCITS Other / Non- Complex Other Derivatives Most NURS Potential liability exceeds loss Insufficient public information Little opportunity to redeem No Appropriateness Test Required Perform Appropriateness Test Diagram 1: Current MiFID Model 4
5 Complex Becomes Complicated Under MiFID II most of the above situation remains unaffected though firms performing Advice and Management services must decide if they will provide an ongoing assessment of Suitability. While the fundamental obligations continue, the important change under MiFID II is that the divide between Non-Complex and Complex assets is moving. It is true that the financial services industry suffered significant issues arising from the use of complicated structures within certain mortgage-related assets. It is no surprise that the EU bodies have since sought to protect retail investors from being exposed to such structures without sufficient transparency. The danger is that, following the blunt segmentation imposed under the Alternative Investment Fund Managers Directive (AIFMD), assets that are broadly similar to an Undertakings for Collective Investment in Transferable Securities (UCITS) scheme seem destined to be defined as Complex under MiFID II. The UK regulator the Financial Conduct Authority (FCA) - recognised this shift, and stated in its March 2015 Discussion Paper: We therefore want to highlight this issue now with firms, clearly setting out our expectation that the types of products that are considered non-complex will be significantly limited. Of particular relevance to the UK, non-ucits collective investment schemes (such as [Non-UCITS Retail Schemes] NURSs) are likely to be considered complex, and therefore subject to the appropriateness test. The FCA is correct, although careful reading shows the above statement is only the FCA s expectation. The actual outcome is not yet fixed, and the polarised nature of language (that an asset must either be non-complex or complex ) has I feel been unhelpful as firms approach this issue. MiFID included definitions of the types of asset that could automatically be exempted from the Appropriateness Test by virtue of the Scenario Exemption, and under Article 25(4) of MiFID II each of these definitions is narrowed. The following table (diagram 2) summarises the shift. MiFID I Article 19(6) MiFID II Article 25(4) Shares admitted to trading on a regulated market or in an equivalent third country market... or on a MTF, where those are shares in companies, and excluding shares in non- UCITS collective investment undertakings and shares that embed a derivative Money market instruments... excluding those that embed a derivative or incorporate a structure which makes it difficult for the client to understand the risk involved Bond or other forms of securitised debt (excluding those bonds or securitised debt that embed a derivative) Bonds or other forms of securitised debt admitted to trading on a regulated market or on an equivalent third country market or on a MTF, excluding those that embed a derivative or incorporate a structure which makes it difficult for the client to understand the risk involved UCITS Shares or units in UCITS, excluding structured UCITS as referred to in the second subparagraph of Article 36(1) of Regulation (EU) No 583/ Structured deposits, excluding those that incorporate a structure which makes it difficult for the client to understand the risk of return or the cost of exiting the product before term Diagram 2: MiFID definition comparison 5
6 In each case, the EU s distrust of structured investment products has narrowed the range of assets. Even where the firm s activity is limited to either Execution or Receipt and Transmission, and the firm has confirmed that no Suitability obligation arises, the range of assets that can be exempt from Appropriateness testing is reduced. This is the effect highlighted by the FCA. Consider Investment Trust Company (ITC) shares, which many investment platforms currently make available for purchase by their clients. MiFID originally enabled the firm to recognise the ITC shares as shares admitted to trading, creating an automatic route to exemption. However, MiFID II amends the definition excluding shares in non- UCITS collective investment undertakings which in the light of AIFMD is generally accepted as including ITC shares. Therefore, where MiFID allowed ITC shares to be recognised as Listed Shares, MiFID II builds on AIFMD to instead consider ITC shares as Non-UCITS collectives. But before we get too depressed by this change, there is one extra category I have not shown on the table the category of Other non-complex financial instruments for the purpose of this paragraph. ESMA has been asked to develop guidelines to help firms determine when a product is deemed complex, which are due to be published in January In addition to the types of asset which by definition may be excluded from an Appropriateness test, there is another category and we do not yet know what it will contain under MiFID II. FCA noted this point also in Discussion Paper DP 15/3: ESMA has been asked to develop guidelines to help firms determine when a product is deemed complex, which are due to be published in January While certain assets may no longer be non-complex by pure definition, some of those may yet be capable of recognition in this category of Other non-complex financial instruments. Rather than two categories (complex / noncomplex), we in effect have three: Non-complex by definition; Non-complex by attribute (currently unknown); and Complex. 6
7 Model Under MiFID II One practical difficulty indicated by diagram 3 is that Security Master File data structures may come under pressure. Where under MiFID I all Listed Shares would receive the same treatment, under MiFID II some Listed Shares may require different processes from others. Similarly, the presence of derivatives within a UCITS fund will change the requirement for Appropriateness. Firms may approach this difficulty in various ways, and so need to start considering how such issues will affect their customer interactions and investor journey. With an expectation that many firms will need to commence Appropriateness tests for the first time, or widen the scope of their existing tests, firms need to consider whether to structure their administration processes to perform all Appropriateness effort at the point of client inception, regardless of whether the client s initial instruction requires any Appropriateness test to be performed. Other firms might decide to request information from investors only at the point needed to perform an Appropriateness test relevant to the current activity. Such decisions will be influenced by the expected balance of business activity. The difficulty for Firms is that with ESMAs guidelines only due in January 2016, one year prior to the planned implementation of MiFID II, waiting for certainty is a dangerous game. Therefore it is prudent for Firms to consider how they might perform Appropriateness Tests across a wide range of supported assets. CIS Manager / Pension Manager Other Firms Exempt from MiFID Not Performing MiFID Business Suitability Assessed By Another Firm Performing MiFID Business Advice / Managing Execution or 'Reception and Transmission' Other MiFID Business Perform Suitability Test Clearly Inform Client: "No Suitability Test" Confirm re Ongoing Suitability Listed Shares Bonds / Debt UCITS Other / Non- Complex Other Non- Deriv Deriv Non- Deriv Deriv Non- Deriv Deriv TBC Derivatives Potential liability exceeds loss Insufficient public information Little opportunity to redeem No Appropriateness Test Required Perform Appropriateness Test Diagram 3: MiFID II mapping of Appropriateness and Suitability. 7
8 A Model for Appropriateness Testing Firms keen to assess the implications of Appropriateness testing on their business activities might consider the following 5-step process as a starting point: 5 Step Process Why is the asset valid in your offering? In many cases Firms will previously have performed Asset Due Diligence and confirmed that an asset is a valuable addition to its product offering. The Firm should review the attributes that make it a good asset to make available to its clients. Does any sub-category of the Firm s client-base have needs opposed to those attributes? The Firm should consider whether the positive attributes it has identified are not aligned with any types of client it services. Any potential mis-match indicates the area where Appropriateness may be a concern in respect of that asset. What information is needed to identify if the particular Client fits into the identified sub-category? Consider how you could best assess whether a given client could be in the population for which the asset is therefore not Appropriate. What additional information would the firm need to collect? The Firm can re-use information already held, provided such information is current, complete and correct though additional information might be relevant for the different assets that a client might wish to purchase. How should this be implemented? The Firm might seek to collect at the start of the client relationship all information that may in time become relevant for Appropriateness purposes. Alternatively it might prefer to seek information only at the point of need. Similarly, implementation needs to consider how different communication channels might be impacted: requesting information via postal channels will often produce a delay in the process; telephone scripts can be readily updated to seek immediate information, though there is a risk of call duration being extended; web interaction leads to a different shape of process implementation. 8
9 For some firms, implementation will be an in-house project. Other firms however are serviced by third party administrators. Even though one benefit of such outsourcing arrangements is the ability to share project implementation costs across a wider community of system users, firms should remain mindful of the need to ensure that the implementation supports their own business context and approach to customer engagement. Perhaps the approach you require may differ from what your administrator has previously been asked to service, and such a conclusion will have commercial implications, you must ensure your cultural values are upheld. So how would this model handle the ITC shares or NURS assets noted earlier as potentially falling into the Appropriateness regime under MiFID II? Diagram 4 offers a simplistic (and hopefully provocative) example for a nonstructured NURS. The responses are deliberately written so that many readers will not agree with all parts of the table. My rationale is that when you identify the points at which you would disagree and want to go deeper into a response, you have successfully identified a key requirement of your own Appropriateness solution. Question Why is the asset valid in your offering? Possible Response for a non-structured NURS It s an FCA-regulated Collective investment Scheme, subject to rules defined for the Retail market. It is broadly the same as a UCITS, though with slightly wider investment limits. Does any sub-category of the Firm s client-base have needs opposed to those attributes? I am allowed to assume that a Professional Investor has the relevant knowledge, and compliance with the NURS standard is sufficient for me to conclude the asset s attributes are aligned with a Retail investor. What information is needed to identify if the particular Client fits into the identified sub-category? I already know if my client is a Retail investor (whether by definition or because I treat all clients as Retail investors). What additional information would the firm need to collect? Probably little or nothing. I will have categorised the client already, and if my earlier steps identified no additional information requirements... How should this be implemented? I will need to update investor documentation, call scripts, and web pages etc. to ensure the completion of this Appropriateness Test is clearly documented as part of the customer journey. However, the impact on overall processes is limited where I have not identified any need for additional information to be collected. Diagram 4: Simplistic example for a non-structured NURS Working through this example demonstrates that the first step is vital. Knowing why a given asset is valid and valuable to your product offering sets the scene and defines the parameters for all action that follows. 9
10 Closing Thoughts It is worth considering how the current interest regarding Robo-Advisers might have application to the issue of Appropriateness. Leaving aside the question of whether Robo-Advice constitutes regulated advice or a personal recommendation, it seems pertinent to note that the Robo-advice services taking shape in the market seem well-placed to deliver Appropriateness tests. These services collect information about the client; their investment outlook; and their understanding of and appetite for financial risk. Such knowledge can all play a valuable part of any Appropriateness test subsequently required, and it will be interesting to see how MiFID II impacts the emergence of these services in the UK. "Understanding the likely shape of your MiFID II product proposition is important to any effort to understand the potential implications of introducing or expanding Appropriateness testing in your organisation." There are many aspects of MiFID II that firms will need to engage with in the coming months, though the potential impact of Appropriateness on the customer journey makes it an important item for engagement. Understanding the likely shape of your MiFID II product proposition is important to any effort to understand the potential implications of introducing or expanding Appropriateness testing in your organisation. Recognising the likelihood that ESMA s guidelines will not enable many types of assets to be viewed as non-complex, the Tax Incentivised Savings Association (TISA) is looking to initiate industry effort to formulate an approach to Appropriateness that can be proposed to the FCA as an Industry model. Let us hope that the UK industry as a whole will show the courage highlighted by Schumacher, and find an approach to complexity that does not simply make the administration burden bigger and more complicated. About DST DST Systems, Inc. (NYSE: DST) is a leading provider of specialised technology, strategic advisory, and business operations outsourcing to the financial services industry. We assist clients in transforming complexity into strategic advantage by providing tools and services to help them stay ahead of and capitalise on ever-changing customer, business and regulatory requirements in the world s most demanding industries. Copyright 2017 DST Systems, Inc. All rights reserved. The DST logo is a registered trademark of DST Systems, Inc. Other brand and product names mentioned in this document may be trademarks or registered trademarks, in various jurisdictions, of DST Process Solutions Limited, DST Systems, Inc. or their associated companies. All third party brand and product names are trademarks or registered trademarks of their respective owners Inc. DST Systems, Inc. (DST) has provided the information in this Product Brochure for general informational purposes only, has a right to alter it at any time, and does not guarantee its timeliness, accuracy or completeness. All obligations of DST with respect to its systems and services are described solely in written agreements between DST and its customers. This document does not constitute any express or implied representation or warranty by DST, or any amendment, interpretation or other modification of any agreement between DST and any party. In no event shall DST or its suppliers be liable for any damages whatsoever including direct, indirect, incidental, consequential, loss of business profits or special damages, even if DST or its suppliers have been advised of the possibility of such damages. 10
Work and Pensions Select Committee Inquiry into governance and best practice in workplace pension provision
Work and Pensions Select Committee Inquiry into governance and best practice in workplace pension provision Introduction 1. With the advent of automatic enrolment, questions of governance and best practice
More informationHot topic. FCA confirms final MiFID II rules. Stand out for the right reasons Financial Services Risk and Regulation
www.pwc.co.uk/fsrr 24 July 2017 Stand out for the right reasons Financial Services Risk and Regulation Hot topic FCA confirms final MiFID II rules Highlights The FCA issued final rules on MiFID II implementation
More informationInsurance Distribution Directive implementation Feedback to CP17/23 and near-final rules
Insurance Distribution Directive implementation Feedback to CP17/23 and near-final rules Policy Statement PS17/27 December 2017 PS17/27 Financial Conduct Authority Insurance Distribution Directive implementation
More informationLaunch, assess, wait. A practical guide to preparing for MiFID
IBM Business Consulting Services Financial markets Launch, assess, wait. A practical guide to preparing for MiFID Launch, Assess, Wait: The MiFID project stages Category MiFID Action Level of staff Level
More informationRE: Developing our approach to implementing MiFID II conduct of business and organisational requirements
Tom Ward Strategy and Competition Division Financial Conduct Authority 25 The North Colonnade London E14 5HS Email to: dp15-03@fca.org.uk Date: 26 May 2015 Dear Sir RE: Developing our approach to implementing
More informationBANCO BILBAO VIZCAYA ARGENTARIA, S.A., ( BBVA ) EMIR Article 39(7) CLEARING MEMBER DISCLOSURE DOCUMENT
Version: February 2015 BANCO BILBAO VIZCAYA ARGENTARIA, S.A., ( BBVA ) EMIR Article 39(7) CLEARING MEMBER DISCLOSURE DOCUMENT Introduction Throughout this document references to we, our and us are references
More informationESMA s policy orientations on guidelines for UCITS Exchange- Traded Funds and Structured UCITS
ESMA s policy orientations on guidelines for UCITS Exchange- Traded Funds and Structured UCITS Response from the Association of British Insurers Introduction The ABI welcomes the opportunity to respond
More informationSupporting you through the transition to MiFID II/MiFIR. November 2017
Supporting you through the transition to MiFID II/MiFIR November 2017 Understanding the challenges & opportunities of regulatory change All regulatory change brings both challenges and opportunities in
More informationConsultation on Integrating sustainability risks and factors in the UCITS Directive and AIFMD
European Securities and Markets Authority 103 Rue de Grenelle 75345 Paris France Submitted online at www.esma.europa.eu 19 February 2019 RE: Consultation on Integrating sustainability risks and factors
More informationFor financial intermediary use only. Not approved for use with customers. What Mifid ii means to you
For financial intermediary use only. Not approved for use with customers. What Mifid ii means to you Welcome To raise your hand in the webinar, click here To ask a question, please type here. We will respond
More informationConsultation Paper: Proposed exemption to facilitate personalised robo-advice
Consultation paper June 2017 Consultation Paper: Proposed exemption to facilitate personalised robo-advice About this consultation paper We are considering using our exemption powers to facilitate the
More informationAIFMD Investment Funds Briefing
Page 1 AIFMD Investment Funds Briefing 25 March 2013 Are you AIFMD ready? The Alternative Investment Fund Managers Directive (AIFMD) is due to be transposed into UK law on 22 July 2013. It heralds a period
More informationPolicy Statement 10/6. Financial Services Authority. Distribution of retail investments: Delivering the RDR - feedback to CP09/18 and final rules
Policy Statement 10/6 Financial Services Authority Distribution of retail investments: Delivering the RDR - feedback to CP09/18 and final rules March 2010 Contents 1 Overview 3 2 Describing and disclosing
More informationDraft. COMMISSION REGULATION (EU) No /..
EN EN EN EUROPEAN COMMISSION Brussels, xxx C(2010) XXX final D009283/02 Draft COMMISSION REGULATION (EU) No /.. of [ ] implementing Directive 2009/65/EC of the European Parliament and of the Council as
More informationWhat is equivalence and how does it work?
Brexit Quick Brief #4 What is equivalence and how does it work? Key points When assessing the operational rights or treatment of foreign banks in the EU the EU assesses whether the standards of regulation
More informationDIRECT CLIENT DISCLOSURE DOCUMENT 1. Indirect Clearing Goldman Sachs International
DIRECT CLIENT DISCLOSURE DOCUMENT 1 Indirect Clearing Goldman Sachs International Introduction 2 Throughout this document references to "we", "our" and "us" are references to the clearing broker's client
More informationINFINOX Capital Ltd Best Execution Policy
INFINOX Capital Ltd Best Execution Policy July Page 12018 INFINOX Capital Ltd 20 Birchin Lane London EC3V 9DU www.infinox.com 1. Introduction 1.1 This Best Execution Policy (the Policy ) summarises the
More informationConsultation on the review of the Prospectus Directive. Submission from the Association of Investment Companies
Consultation on the review of the Prospectus Directive Submission from the Association of Investment Companies The Association of Investment Companies (AIC) welcomes the opportunity to respond to the European
More informationMiFID II Review of FCA Policy Statement 17/14
REGULATORY INSIGHT JULY 2017 MiFID II Review of FCA Policy Statement 17/14 The FCA issued its final Policy Statement on MiFID II on 3rd July. Two of CCL s directors, Stuart Holman and Atma Dhariwal, discuss
More informationThe impact of MiFID II on AIFMD investment managers
The impact of MiFID II on AIFMD investment managers The impact of MiFID II on AIFMD investment managers Introduction The MiFID II Directive and the Markets in Financial Instruments Regulation (MiFIR) will
More informationERROR! NO TEXT OF SPECIFIED STYLE IN DOCUMENT.
ERROR! NO TEXT OF SPECIFIED STYLE IN DOCUMENT. Version: March 2014 EMIR Article 39 Disclosure Document 1 Introduction 1.1 Throughout this document references to we, our and us are references to Marex Financial
More informationAmCham EU s Response to the European Commission s Consultation on legislative steps for the Packaged Retail Investment Products initiative
AmCham EU s Response to the European Commission s Consultation on legislative steps for the Packaged Retail Investment Products initiative American Chamber of Commerce to the European Union Avenue des
More informationHMRC and HMT Consultation Document: Taxing Gains Made by Non-Residents on UK Immovable Properties
James Konya NRCG Consultation HM Revenue & Customs Room 3C/04 100 Parliament Street London SW1A 2BQ 15 February 2018 Dear James HMRC and HMT Consultation Document: Taxing Gains Made by Non-Residents on
More informationCLEARING MEMBER DISCLOSURE DOCUMENT 1
Version: November 2013 CLEARING MEMBER DISCLOSURE DOCUMENT 1 Introduction 2 Throughout this document references to we, our and us are references to the clearing broker. References to you and your are references
More informationCESR Public Consultation (ref: CESR/09-295)
CESR Public Consultation (ref: CESR/09-295) MiFID complex and non complex financial instruments for the purposes of the Directive s appropriateness requirements 1. Association française des marchés financiers
More informationBrexit Quick Brief #4. What is equivalence and how does it work?
Brexit Quick Brief #4 1 What is equivalence and how does it work? Key points s are a series of short papers intended to inform readers about key commercial, regulatory and political considerations around
More informationChallenges in the European Supervision of Asset Management
Date: 9 October 2012 ESMA/2012/669 Challenges in the European Supervision of Asset Management BVI Asset Management Conference Frankfurt, 9 October 2012 Steven Maijoor, ESMA Chair Ladies and Gentlemen,
More informationNew on the Horizon: Accounting for dynamic risk management activities
IFRS New on the Horizon: Accounting for dynamic risk management activities July 2014 kpmg.com/ifrs Contents Introducing the portfolio revaluation approach 1 1 Key facts 2 2 How this could impact you 3
More informationETFs: A BEGINNER S GUIDE. November 2018
ETFs: A BEGINNER S GUIDE November 2018 The purpose of this guide is to provide an introductory guide to exchange traded funds ( ETFs ) in Europe. We note that this guide has been made available to the
More informationtrust transparency tenacity teamwork
trust transparency tenacity teamwork Best Execution Policy February 2018 Overview Under the EU Markets in Financial Instruments Directive (MiFID) and COBS 11.2B of the Financial Conduct Authority Handbook,
More informationRisk management culture focused on integrity and good conduct
Key risks and mitigations Risk management culture focused on integrity and good conduct The Group is exposed to a variety of risks as a result of its business activities. Effective risk management is a
More informationWorking Together. An Industry Guide to Lender and Intermediary Accountabilities and Responsibilities in Mortgage Sales and Servicing
Working Together An Industry Guide to Lender and Intermediary Accountabilities and Responsibilities in Mortgage Sales and Servicing Issued: September 2016 0 A joint AMI, CML and IMLA paper 1. Introduction
More informationJFSC Risk Overview: Our approach to risk-based supervision
JFSC Risk Overview: Our approach to risk-based supervision Contents An Overview of our approach to riskbased supervision An Overview of our approach to risk-based supervision Risks to what? Why publish
More informationADVISING ON INVESTMENTS (ARTICLE 53(1) OF THE REGULATED ACTIVITIES ORDER) (PERIMETER GUIDANCE) INSTRUMENT 2018
ADVISING ON INVESTMENTS (ARTICLE 53(1) OF THE REGULATED ACTIVITIES ORDER) (PERIMETER GUIDANCE) INSTRUMENT 2018 Powers exercised A. The Financial Conduct Authority makes this instrument in the exercise
More informationSchemes spotlight 2016 First Edition
SCHEMES SPOTLIGHT 2016 Schemes spotlight 2016 First Edition The UK schemes market insight: An in-depth review of the schemes market Published by The number 1 UK brand for schemes 1 A foreword from UK General
More informationAppendix KII Regulation
Appendix 1EU EU COMMISSION REGULATION (EU) No 583/2010 of 1 July 2010 implementing Directive 2009/65/EC of the European Parliament and of the Council as regards key investor information and conditions
More informationGlobal Covered Bond Market RBC MiFID II Survey 2013 Commentary and Review
Global Covered Bond Market RBC MiFID II Survey 2013 Commentary and Review april 2017 table of contents 03 Client Feedback Summary 04 Still Work To Do As The Market Prepares for MiFID II 06 MiFID II Survey
More informationSeveral members of the Subcommittee have contributed to this draft and appropriate attribution will be made in a later version.
This is a working draft of a Chapter of the Practical Manual on Transfer Pricing for Developing Countries and should not at this stage be regarded as necessarily reflecting finalised views of the UN Committee
More information2019 Half-year financial results
Half-year financial results H1 FY19 results Highlights 2 Keeping choice and competition alive for consumers AFG provides significant value to consumers and lenders large and small. Consumers have shown
More informationKeynote Address. AFME European Compliance and Legal Conference London. Verena Ross Executive Director. Ladies and gentlemen,
20 September 2017 ESMA71-319-53 Keynote Address AFME European Compliance and Legal Conference London Verena Ross Executive Director Ladies and gentlemen, It is a pleasure for me to be here this morning
More informationSome impacts for fund managers of Brexit
Some impacts for fund managers of Brexit November 2015-1 - Europe Economics is registered in England No. 3477100. Registered offices at Chancery House, 53-64 Chancery Lane, London WC2A 1QU. Whilst every
More informationAIFMD. Fundamental considerations to be addressed at a strategic level for marketing in the EU:
AIFMD Are you ready? The Alternative Investment Fund Managers Directive ( AIFMD or the Directive ) came into force on July 22, 2013 with certain activities or requirements being governed by transitional
More informationBest Execution Policy. Crossbridge Capital LLP
Best Execution Policy Crossbridge Capital LLP Contents 1 Introduction... 3 1.1 The Best Execution obligation... 3 1.2 Application of FCA and EU regulations... 3 1.3 Direct and indirect execution... 4 1.4
More informationFREQUENTLY ASKED QUESTIONS
NOV 2017 MARKETS IN FINANCIAL INSTRUMENTS DIRECTIVE II (MIFID II) FREQUENTLY ASKED QUESTIONS Table of Contents Background...4 What is MiFID?... 4 The general objectives of MiFID II are to:... 4 How was
More informationTHE PASSPORT UNDER MIFID
THE COMMITTEE OF EUROPEAN SECURITIES REGULATORS Ref: CESR/07-318 THE PASSPORT UNDER MIFID Recommendations for the implementation of the Directive 2004/39/EC Feedback Statement May 2007 11-13 avenue de
More informationHow can we improve outcomes for investors in investment funds?
Date: 16 November 2016 ESMA/2016/1579 How can we improve outcomes for investors in investment funds? EFAMA Investment Management Forum, 16 November 2016, Brussels Steven Maijoor ESMA Chair Ladies and gentlemen,
More informationSeptember Securities Derivatives Structured Finance Corporate Governance
IN Capital Markets & Financial Regulation Securities Derivatives Structured Finance Corporate Governance September 2016 2016 n e w s f ll a s h Draft Law amending law 4099/2012 and other provisions A)
More informationWhat s Complex? CESR Provides Technical Advice
IN THIS ISSUE: What's Complex? CESR Provides Technical Advice.page 1 CESR Technical Advice on Nonequity Market Transparency.page 5 What s Complex? CESR Provides Technical Advice In our 29 March 2010 issue
More informationGood governance is central to our Investment Proposition. For investment professionals only
Good governance is central to our Investment Proposition For investment professionals only Contents 02 What is governance? 04 Why is good governance so important? 05 How does the governance process work
More informationGuidance Note: Sale and Distribution of KiwiSaver
Guidance Note: Sale and Distribution of KiwiSaver October 2012 About this guidance note This guidance note is for people involved with the sale and distribution of KiwiSaver schemes. It provides guidance
More informationFeedback Statement on CP109 Consultation on Potential Changes to the Investment Framework for Credit Unions
Feedback Statement on CP109 Consultation on Potential Changes to the Investment Framework for Credit Unions 1 Table of Contents Foreword... 2 1. Introduction... 4 2. Executive Summary... 6 3. Responses
More informationRISK FACTOR PORTFOLIO MANAGEMENT WITHIN THE ADVICE FRAMEWORK. Putting client needs first
RISK FACTOR PORTFOLIO MANAGEMENT WITHIN THE ADVICE FRAMEWORK Putting client needs first Risk means different things to different people. Everyone is exposed to risks of various types inflation, injury,
More informationPERIMETER GUIDANCE (MiFID AND RECAST CAD SCOPE) INSTRUMENT 2007
FSA 2007/20 PERIMETER GUIDANCE (MiFID AND RECAST CAD SCOPE) INSTRUMENT 2007 Powers exercised A. The Financial Services Authority makes this instrument in the exercise of the power in section 157(1) (Guidance)
More informationRecognised Investment Exchanges
Recognised Investment Exchanges REC Contents Recognised Investment Exchanges REC 1 Introduction 1.1 Application 1.2 Purpose, status and quotations REC 2 Recognition requirements 2.1 Introduction 2.2 Method
More informationIn producing this updated guide, our aim is that the relationships in which lenders and intermediaries are engaged deliver good customer outcomes.
1 Working together Working Together; An Industry Guide to Lender and Intermediary Accountabilities and Responsibilities in Mortgage Sales and Servicing revised and updated, April 2014 A Joint AMI, IMLA
More informationMeaningful Disclosure of Costs and Charges Summary Paper
February 2015 Meaningful Disclosure of Costs and Charges Summary Paper Page 0 of 13 OVERVIEW This technical position paper builds on The Investment Association s work over the past three years, which has
More information1. Introduction and interpretation. 2
Finalised guidance General guidance on the AIFM Remuneration Code (SYSC 19B) January 2014 Table of Contents 1. Introduction and interpretation. 2 2. Guidance to firms as to when the AIFM Remuneration Code
More informationThe Perimeter Guidance Manual. Chapter 13. Guidance on the scope of MiFID and CRD IV
The Perimeter Guidance Manual Chapter Guidance on the scope of MiFID and CRD IV .3 Investment Services and.3 Introduction... Q12.Where do we find a list of MiFID services and activities? In Section A of
More informationPolicy Statement PS1/18 Strengthening individual accountability in insurance: optimisations to the SIMR. February 2018
Policy Statement PS1/18 Strengthening individual accountability in insurance: optimisations to the SIMR February 2018 Prudential Regulation Authority 20 Moorgate London EC2R 6DA Policy Statement PS1/18
More informationInvestment outsourcing options for your pension plan
Fiduciary solutions for CORPORATE PENSION PLANS Investment outsourcing options for your pension plan INVESTED. TOGETHER. Managing complexity Managing a pension plan is not getting any easier. Rapid-fire
More informationEIOPABoS17/ October 2017
EIOPABoS17/204 11 October 2017 Final Report on Guidelines under the Insurance Distribution Directive on Insurancebased investment products that incorporate a structure which makes it difficult for the
More informationOrder Execution Policy 3 rd January 2018
Nordea Investment Management Order Execution Policy 3 rd January 2018 Contents 1. Purpose... 2 2. Regulatory context... 2 3. Scope... 2 4. Order process... 3 5. Execution decision process... 5 6. Venue
More informationOfficial Journal of the European Union. (Non-legislative acts) REGULATIONS
31.3.2017 L 87/1 II (Non-legislative acts) REGULATIONS COMMISSION DELEGATED REGULATION (EU) 2017/565 of 25 April 2016 supplementing Directive 2014/65/EU of the European Parliament and of the Council as
More informationEACH response to the ESMA discussion paper Draft RTS and ITS under the Securities Financing Transaction Regulation
EACH response to the ESMA discussion paper Draft RTS and ITS under the Securities Financing Transaction Regulation April 2016 1. Introduction...3 2. Responses to specific questions...5 2 1. Introduction
More informationIMPLEMENTATION OF THE AIFMD IN THE UK
IMPLEMENTATION OF THE AIFMD IN THE UK FSA PUBLISHES CONSULTATION PAPER CP12/32 INTRODUCTION Following the publication of DP 12/11 in February 1, the FSA has published CP 12/32, the first consultation paper
More informationGuidance Note: Sale and Distribution of KiwiSaver
Guidance Note: Sale and Distribution of KiwiSaver Consultation draft June 2012 About this guidance note This guidance note is for people involved with the sale and distribution of KiwiSaver schemes. It
More informationChapter 10A. Appropriateness (for nonadvised services) (MiFID and insurance-based investment products provisions)
Appropriateness provisions) Chapter Appropriateness (for nonadvised services) (MiFID and insurance-based investment products provisions) Section.1 : Application.1 Application [Note: ESMA has also issued
More informationRegulation of defined contribution master trusts. Consultation document issued by the Pensions Authority
Regulation of defined contribution master trusts Consultation document issued by the Pensions Authority 26 July 2018 1. Introduction Ireland is required to transpose the IORP II Directive 1 by 13 January
More informationNEGOTIATION REVIEW. Negotiating Risk By Roger Greenfield. thegappartnership.com
NEGOTIATION REVIEW Negotiating Risk By Roger Greenfield contact@thegappartnership.com thegappartnership.com Negotiating risk Risk: one of the most under valued variables available during contract negotiations.
More informationRE: Consultation on integrating sustainability risks and factors in MiFID II
---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
More informationCLIENT CATEGORISATION
CLIENT CATEGORISATION CLIENT CATEGORISATION Notesco Financial Services Limited (the Company ), whose registered office is at 2, Iapetou street, 4101, Limassol, Cyprus is authorised and regulated by Cyprus
More information7 September Nick Greatorex, Group Finance Director, commented:
7 September 2017 IFRS 15 early adoption and presentation Capita plc ( Capita ) is today hosting a presentation for institutional investors and analysts on the application of the International Accounting
More informationU.K. Pensions Asset-Liability Modeling and Integrated Risk Management
WHITEPAPER Author Alan Taylor Director Wealth Management and Pensions U.K. Pensions Asset-Liability Modeling and Integrated Risk Management Background Are some pension schemes looking at the wrong risk
More informationJefferies International Limited
Jefferies International Limited Order Execution Policy August 2015 Issued November 2013 Version 2.0 Supersedes all previous Compliance Policies regarding this subject matter Jefferies International Limited
More informationImplementation of the EU mortgage credit directive. Response by the Council of Mortgage Lenders to the HM Treasury consultation paper
Implementation of the EU mortgage credit directive Response by the Council of Mortgage Lenders to the HM Treasury consultation paper Introduction 1. The CML is the representative trade body for the residential
More informationCredit Opinion: Bank Nederlandse Gemeenten N.V.
Credit Opinion: Bank Nederlandse Gemeenten N.V. Global Credit Research - 09 May 2014 The Hague, Netherlands Ratings Category Moody's Rating Outlook Stable Bank Deposits Aaa/P-1 Bank Financial Strength
More informationRegulations in Investment Management An EU Perspective
Regulations in Investment Management An EU Perspective Abstract The UK s decision to leave the European Union (EU) will have a profound impact on the financial regulations that are being formulated currently.
More informationFebruary Request for Comment:
www.moodys.com Special Comment Moody s Global Credit Policy February 2008 Table of Contents: Summary of Proposed Rating Scale Options 2 Background 2 Details on the Options for Consideration 3 Moody s Related
More informationThe definitive source of actionable intelligence on hedge fund law and regulation
The definitive source of AIFMD Answers to Questions Most Frequently Asked by U.S. and Other Non- E.U. Managers on the Impact and Implementation of the AIFMD By Samuel K. Won and Simon Whiteside The Alternative
More informationEnhanced protection for retail investors: MiFID II and MiFIR
Date: 30 June 2014 ESMA/2014/726 Enhanced protection for retail investors: MiFID II and MiFIR Changes are being made to a key piece of European law whose purpose is to protect you when you buy or invest
More informationImplementing measures on the Alternative Investment Fund Managers Directive: CESR call for evidence
Implementing measures on the Alternative Investment Fund Managers Directive: CESR call for evidence Initial submission by the Association of Investment Companies The Association of Investment Companies
More informationJoint Technical Advice
JC 2017 43 28 July 2017 Joint Technical Advice on the procedures used to establish whether a PRIIP targets specific environmental or social objectives pursuant to Article 8 (4) of Regulation (EU) No 1286/2014
More informationRe: Adoption of the amended IAS 39 Financial Instruments: Recognition and Measurement
Dr. Alexander Schaub Director General European Commission Directorate General for the Internal Market 1049 Brussels 26 September 2004 Dear Dr. Schaub, Re: Adoption of the amended IAS 39 Financial Instruments:
More informationRETAIL DISTRIBUTION REVIEW: DISCUSSION DOCUMENT ON INVESTMENT RELATED MATTERS. June 2018
RETAIL DISTRIBUTION REVIEW: DISCUSSION DOCUMENT ON INVESTMENT RELATED MATTERS SECTION 1. Background and context The Financial Services Board s Retail Distribution Review published in November 2014 ( the
More informationSMSG Advice on the Commission s Green Paper Building a Capital Markets Union. Joint meeting ESMA BOS and SMSG 25 June 2015
SMSG Advice on the Commission s Green Paper Building a Capital Markets Union Joint meeting ESMA BOS and SMSG 25 June 2015 1 2 SMSG priorities for a Capital Market Union 1. Focus on retail investors Restore
More informationASSET SALES, THE GOVERNMENT ACCOUNTS, AND THE NEW ZEALAND ECONOMY
Discussion Paper prepared for: ASSET SALES, THE GOVERNMENT ACCOUNTS, AND THE NEW ZEALAND ECONOMY Prepared by Dr Ganesh Nana Fiona Stokes Kelly Dustow Copyright BERL BERL ref #5260 Asset sales, the Government
More informationApproach to Implementation for MiFID II Costs & Charges Disclosures
12 September 2017 1 Introduction... 4 2 Scope of Guide... 5 2.1 What this Guide covers:... 5 2.2 What this Guide does not cover:... 5 3 Scope of MiFID II and Costs & Charges... 6 3.1 Scope of MiFID II...
More informationMarkets in Financial Instruments Directive (MiFID): Frequently Asked Questions
MEMO/10/659 Brussels, 8 December 2010 Markets in Financial Instruments Directive (MiFID): Frequently Asked Questions 1. What is MiFID? MiFID is the Markets in Financial Instruments Directive or Directive
More informationKOCH METALS TRADING LIMITED Authorised and Regulated by the Financial Conduct Authority and Member of the London Metal Exchange
KOCH METALS TRADING LIMITED Authorised and Regulated by the Financial Conduct Authority and Member of the London Metal Exchange Introduction CLEARING MEMBER DISCLOSURE DOCUMENT Throughout this document
More informationBREXIT AND ALTERNATIVE ASSET MANAGERS
BREXIT AND ALTERNATIVE ASSET MANAGERS MANAGING THE IMPACT IN THE EEA July 2018 Sponsored by CONTENTS CONTENTS 1 EXECUTIVE SUMMARY 4 2 MANAGING THE IMPACT OF BREXIT 6 2.1 AIFMD 6 2.2 UCITS 8 2.3 MiFID2/MiFIR
More informationClearing Member Disclosure in relation to Client Clearing Services under the European Market Infrastructure Regulation
Clearing Member Disclosure in relation to Client Clearing Services under the European Market Infrastructure Regulation Introduction Throughout this document references to we, our and us are references
More informationThe Alternative Investment Fund Managers Directive. Key features & focus on third countries
The Alternative Investment Fund Managers Directive Key features & focus on third countries Legal advice from a different perspective Fiercely independent in structure and spirit, Elvinger Hoss Prussen
More informationMaking Materiality Judgements
September 2017 IFRS Practice Statement Making Materiality Judgements Practice Statement 2 Making Materiality Judgements Practice Statement 2 IFRS Practice Statement 2 Making Materiality Judgements is published
More informationBriefing note: MiFID (Market in Financial Instruments Directive) for Corporate Treasurers
The Association of Corporate Treasurers Briefing note: MiFID (Market in Financial Instruments Directive) for Corporate Treasurers Prepared with assistance from London, August 2007 This document may be
More informationHALF YEAR REPORT FOR THE SIX MONTHS ENDED 30 JUNE Chesnara
HALF YEAR REPORT FOR THE SIX MONTHS ENDED 30 JUNE 2018 Chesnara WELCOME TO THE CHESNARA HALF YEAR REPORT for the six months ended 30 June 2018 CONTENTS SECTION A OVERVIEW 04 Highlights 06 Measuring our
More informationBuilding a Transatlantic Capital Markets Union is key to achieving much needed growth in Europe
Building a Transatlantic Capital Markets Union is key to achieving much needed growth in Europe Executive summary The American Chamber of Commerce to the European Union (AmCham EU) is a long-standing supporter
More informationDecoding Brexit for the financial services
Decoding Brexit for the financial services March 2017 1. Passporting: a quick recap Many global financial services firms have their European headquarters in the UK. Their current European business model,
More informationMSCI REAL ESTATE INDEX CONSULTATION
MSCI REAL ESTATE INDEX CONSULTATION Should MSCI seek authorization in the EU as an administrator for MSCI asset-based and fund-based real estate indexes? April 2018 Within this document, MSCI real estate
More informationContents. Overview of integrity measures Multinational (MNE) anti-avoidance provision... 2
Contents Overview of integrity measures... 1 Multinational (MNE) anti-avoidance provision... 2 GST on digital products and services by offshore suppliers... 3 Status of main changes from G20-OECD Action
More informationKey Investor Information for UCITS funds. February 2011
Key Investor Information for UCITS funds February 2011 Key Investor Information for UCITS funds Introduction of the Key Investor Information document (or KII) in place of the Simplified Prospectus is one
More information